Friday, January 27, 2023

Finance Minister says Moratorium is not Interest Free, but to waive Compounding Interest only

NewsFinance Minister says Moratorium is not Interest Free, but to waive Compounding...

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz had clarified that the 6-month loan repayment moratorium announced under the RM150 billion PEMULIH stimulus package announced by the Prime Minister on Monday (28 June) would not be interest free.

According to the Star, Zafrul had in the virtual briefing yesterday (29 June) said that the current moratorium is the same as before, and that the method of repayment, including on interest charges, is between the borrowers and the banks.

Nonetheless, he added that the moratorium will instead waive compounded interest and penalty charges for borrowers, according to NST. He said that the important thing was that the government managed to get the banks to give moratorium to everyone, regardless whether they are affected or not.

“That moratorium hopefully will help the cashflow of the rakyat,” he added.

This is slightly different from the moratorium approved in the first MCO previously, and this moratorium is for everybody, from the B40 group to the T20 group. There will be no requirements or criterias to be met too.

Source: Malay Mail

According to the statement from Muhyiddin, the application will open on 7 July and borrowers are required to apply with their banks and sign the amended loan agreement form.

On the other hand, the moratorium will be automatic for individual borrowers. Small and medium enterprises (SMEs) can apply for the moratorium too. As for companies, it will be subjected to review by the banks.

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